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Business Managment 3/4 > AOS1 Q > Flashcards

AOS1 Q Flashcards

1
Q

Advantages of sole trader (6)

A 
simple and inexpensive to set up
Owner has complete control
No disputes with partners 
Less costly to operate 
Owner right to keep profit
Less government regulation
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2
Q

Disadvantage of sole trader

A 
unlimited liability 
End of business when owner dies
Can't operate if sick
Need carry losses
Difficult for expansion
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3
Q

What are the two types of partnerships. Elaborate

A 
general partnership (unlimited liability)
Limited partnerships (silent partners, financial support)
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4
Q

Advantages of partnership

A 
simple and inexpensive to setup 
Workload can be shared between partners
Risk/debt shared amongst partners 
May be easier to take time off
Easier to raise capital
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5
Q

Disadvantages of partnership

A

unlimited liability
Potential disagreement
Liability for debt incurred by other partners
Difficult to find suitable partner

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6
Q

What is a sole trader business (3)

A

one person who owns and runs the business
The individual and the business have the same entity
Therefore unlimited liability (responsible to pay off debt

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7
Q

What is a partnership

A

A business owned by a minimum of 2 or a maximum of 20 people

Not separate legal entity from the partners.

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8
Q

What is a public listed company (3)

A

company where shares of the business are for sale in an open market (ASX)
Limited liability
Have limited or “Ltd” behind name

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9
Q

Advantage of public limited company (2)

A

limited liability

Easy to raise capital (money) by selling more shares

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10
Q

Disadvantage of public limited company (4)

A

highly complex and time consuming to establish
High cost to establish
More accountability and compliance
Possible loss of control

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11
Q

What is a private listed company eg.

A

An incorporated business with a minimum of two and a maximum of 50 private shareholders, and whose shares are offered only to those people whom the business wishes to have as part owners
Visy

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12
Q

What is social enterprise (3)

A

a business that produces goods and services for the market, but operates with the primary objective of fulfilling a social need eg salvos
The business may make a profit however, the business will continue to work towards goals
Can take form of a charity, a cooperative of privately owned business.

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13
Q

Advantages of social enterprise (2)

A

Can open up new markets

Meeting a social need can have a positive effect on profit and market share

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14
Q

Disadvantage of social enterprise (2)

A

Difficult to obtain capital to start the business
Significant operating costs
Can be difficult to focus on both social and financial objectives

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15
Q

What is a government business enterprise (2)

A

A type of business that is government owned and operated

Like companies, they participate in commercial activities with the goal of making a profit

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16
Q

Advantages of government enterprise (3)

A

able to carry out government policies delivering community services in areas where private sector businesses might hesitate to invest
Can operate with some independence from government
Provision of healthy competition to businesses in the private sector - can lead to low prices in the market

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17
Q

Types of objectives

A 
To make a profit 
To increase market share 
To fulfil a social need 
To fulfil a market need 
To meet shareholders expectations
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18
Q

What is an objective (2)

A

desired goal, outcome or specific result that an organisation intends to achieve
Gives an organisation direction, providing a path to follow

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19
Q

What is a vision statement

A

States what the business aspires to become

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20
Q

What is a mission statement

A

expresses why the business exists, its purpose and how it will operate

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21
Q

What does it mean to fulfil the market need (3)

A

opening a gap in the market
Feeding the target market
Identifying what the target market requires to allow you to meet their needs and build a market for your goods and services

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22
Q

Types of performance indicators (10)

A 
net profit
Number of sales
Rate of productivity growth
Customer satisfaction 
Staff satisfaction 
Staff turnover
Level of wastage 
Number of complaints
Number of workplace accidents
Market share
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23
Q

What is a stakeholder

A

groups and individuals who interact with the business and have a vested interest in its activities

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24
Q

Difference between internal and external stakeholders

A

Internal stakeholders are those are part of the business while external are those who interact with the business but are not part of it

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25
Q

Example of internal stakeholders (5)

A 
owners 
shareholders 
directors 
management 
employees
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26
Q

Example of external stakeholders 4()

A 
Government 
Competitors 
Interest groups (unions, consumer goups, specific issue groups) 
Customers suppliers 
Members of the community
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27
Q

What is corporate social responsibility

A

The obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment

28
Q

The areas of responsibility

A 
Operations 
Finance 
Sales and marketing
Human recourses
technology support
29
Q

What is operations responsible for

A

This area is responsible for the production of a business’s products. It oversees the transformation of inputs into the finished product

30
Q

What is the area of finance responsible for

A

This area is responsible for managing the financial aspect of the business. This can include developing financial policies, raising finance, budgeting, accounting, reporting and cash control

31
Q

What is the area of human recourses responsible for

A

Responsible for co-ordinating all the activities involved from acquiring to terminating employees of the business. They also manage the relationship between the employer and employees

32
Q

What is sales and marketing responsabile for

A

Responsible for the marketing mix known as the 7 p’s. (product, promotion, price, place, people, physical evidence and process

33
Q

What is technology support responsible for

A

This area is responsible for installing and maintaining technology as well as providing assistance to the users of technology in the business

34
Q

7 p’s of sales and marketing

A 
product, 
promotion, 
price, 
place, 
people, 
physical evidence 
process
35
Q

List of management styles

A 
Autocratic
Persuasive 
Consultative 
Participative 
Laissez-faire
36
Q

Autocratic management style (4)

A

manager tells staff wha decisions have been made
One way communication
Controlling
Frequent checking

37
Q

Advantages of autocratic style, (4)

A

Directions and procedures are clearly defined
Employees roles are set out plainly, managers can assess performance
Control is centred at top management
Time efficient

38
Q

Disadvantages of autocratic management style (3)

A

Less ideas circulating the business
Employees job satisfaction decreases as no responsibilities are given
Conflicts between employees trying to satisfy managers

39
Q

The persuasive management style (3)

A

Like autocratic, manager tells staff, but also tries to convince them that it’s the right decision
One way communication
Adding a why and because

40
Q

Advantages of the persuasive management style (4)

A

Managers can gain some trust in ideas
Employees feel that their feelings are being considered
Instructions remain clear
Some acceptance of negative situations

41
Q

Disadvantage of the persuasive management style (3)

A

Attitudes and trust can remain negative
Discussion is still poor
Employees remain frustrated as they are denied dull participation

42
Q

Consultative management style ()3

A

seeks employee ideas and input before making decisions
Two way communication
Manager still makes final decision

43
Q

Advantage of consultative management style ()3

A

Greater variety of ideas
Employees feel that they have ownership in the way the business is run, increase job satisfaction
Task completed more efficiently due to discussion

44
Q

Disadvantages of the consultative management style (3)

A

Slow performance due to time taken to discuss
Some issues are not suitable for wide spread consultation
When number of ideas are shared some are overlooked decreases happiness of certain employees

45
Q

Participative management style (3)

A

Manager unites with staff to make the decision together
Managers recognise strengths and abilities of staff and include them in decision making
Two way communication

46
Q

Advantages of participative management style (3)

A

positive relationships between employees and employer.
employees more likely to accept management decisions.
increase job satisfaction as employees feel that they have played active role in allocating tasks and implementing objectives

47
Q

Disadvantages of the participative management style (4)

A

Long process of decision making
Lowered control of managers
Internal conflict may arise with vast majority of ideas
Not all employees want to contribute

48
Q

Laissez faire management style (3)

A

employees assume total responsibility for, and control of, workplace operations
Employees feel a sense of ownership
Open two way communication

49
Q

Advantages of the laissez faire management style (3)

A

employees feel sense of ownership, which can promote outstanding results
dynamic working environment due to encouragement of creativity
open communication

50
Q

Disadvantages of the laissez faire management style (3)

A

complete loss of control by managers which can lead to misuse of resources
conflicts between employees not cooperating
focus on meeting business objectives can be easily eroded

51
Q

What’s the relationship between management styles and skills (2)

A

the type of management style that a manager users will tend to effect which skills they use stronger than others
also the managers stronger skills will tend to have a stronger influence over what style they should chose to use

52
Q

Management skill communicating (2)

A

Involves the ability to transfer information from a sender to receiver, and listen to feedback.
Can be verbal and non-verbal

53
Q

Management skill delegation(2)

A

Refers to the ability to transfer authority from a manager to an employee to carry out specific activities.
It can lead to fresh ideas and improvements in employee motivation

54
Q

Management skill planning

A

The ability to define business objectives and decide on the methods or strategies to achieve them

55
Q

What are the levels of planning (3)

A

Strategic- long term planning, usually over 2-5 years
Tactical-flexible, adaptable, medium term planning usualy over 1-2 years and assists in the implementing of the strategic plan
Operational-provides specific details about the way in which the business will operate in the short term

56
Q

What is the planning process (5)

A 
Define the objective 
Analyse the environment (SWOT analysis) 
Develop alternative strategies 
Implement an alternative 
Monitor and seek feedback on the implemented strategy
57
Q

The management skill of leading (3)

A

The ability to influence or motivate people to work towards the achievement of business objectives

58
Q

The management skills of decision making

A

The ability to identify the options available and then chose a specific course of action from the alternatives

59
Q

The decision making steps (5)

A 
Develop objectives and criteria 
Outline the facts 
Identify alternative solutions 
Analyse the alternatives 
Chose one alternative and implement
60
Q

What are the interpersonal skills (3)

A

Ability to deal or liaise with people and build positive relationships with staff
How to best get along with staff to achieve objectives
Genuine concern for interests

61
Q

What is corporate culture

A

Refers to the values, ideas, expectations and beliefs shared by members of the business

62
Q

What is official corporate culture (3

A

Policies, objectives or slogans of the business

63
Q

What is the real corporate culture (2) eg

A 
Informal rules (unwritten) that guide how people behave in the business. 
E.G. staff dress, language staff use, how staff treat each other and customers
64
Q

What are the the elements of corporate culture (4(

A

Values and practices
Symbols
Rituals, rites and celebrations
Heroes (successful employees)

65
Q

Parts of developing corporate culture (2)

A

It is important to have positive corporate culture as it makes the workplace more positive which can lead to more success
Management is able to build on this by extending the four essential elements

66
Q

Types of leaders And what they do

A 
Transactions leaders (provide staff with rewards) 
Transformational (inspires staff)

Business Managment 3/4 (9 decks)

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